Posts Tagged "GBP"

ECB Impact on GBPUSD On 20 June, I wrote about central bank power and the impact the ECB can have on the currency value. This was in evidence again this week on Thursday, when Mario Draghi, the head of the ECB, stated they would do “whatever it takes” to save the Euro. I have chosen to illustrate the impact of his speech on GBPUSD, rather than the Euro. The 4 hour candle on EURUSD was 199 pips in range. The candle length for Cable was 232 pips. In either case, very significant movements. One of the “excuses” for weak GDP figures in the UK has been the turmoil in Europe and the Eurozone. For any disbelievers, the market response to Mario Draghi’s speech provides compelling evidence of the impact of the Euro on the value of sterling and the UK economy. For anyone watching the market this Friday afternoon, the value of the Euro has continued to rise on the back of weak GDP figures from the USA, with EURUSD now trading more than 300 pips above the lows established earlier in the week. What do you predict for the ECB...